Latest Wrexham AFC statement released about club finances

A spokesman for the club said: “Following our initial update a little while back, we have received several inquiries from members regarding the situation at the club. We will update the membership every Friday with the latest news from the Trust until the current crisis is over.

“Obviously, these are worrying times and not just for Wrexham AFC. We will update this financial position once we have completed a review of the April management accounts as this will provide the running costs of the club.

“We will hopefully have further guidance from the Government on the possible lifting of the current lockdown and an update on the furlough scheme.”

The update states that the Wrexham Supporters Trust (WST) funds stand at £178k. It adds that current outgoings as a club are around 10k per month, including ongoing expenses and various other regular outgoings.

The WST has recently made a payment of £20k to the club to meet a shortfall caused by the COVID-19 crisis.

A £50k payment from the National League has been received. The club spokesman clarifies that the team would have expected to receive in the new season but has been brought forward and will have to be deducted from next season budgeted income.

Wrexham AFC are also due to make the £100k payment to Glyndwr University in September as a part of the Racecourse lease agreement.

The club currently has no income to offset these expenses.

The spokesman also adds that the club have not yet received a pay-out from the government furlough programme.

The statement continues: “We have no visibility on when we will be able to return to the Racecourse to generate income. The WST fundraising group is working on proposals put forward by members and we hope to be able to give further information on fundraising in the next bulletin.

“Obviously, these are worrying times and not just for Wrexham AFC. We will update this financial position once we have completed a review of the April management accounts as this will provide the running costs of the club.

“We will hopefully have further guidance from the Government on the possible lifting of the current lockdown and an update on the furlough scheme.”

Further questions were clarified such as the decision to keep the club shops closed and the inability to sell new season tickets.

News on the future of a second disabled platform was also referenced.

“Following the recent announcement regarding the cancellation of the Lionel Richie concert we are now in a position to start progressing the platform. Following the initial submission of plans to the local authority, feedback was received requiring slight amendments.

“Previously, the concert used this area of the stadium and it was decided to hold back on submitting revised plans until after the detailed plans for the concert were fully known. Now that the concert has been put on hold, we will work on amended designs to submit for approval to the local authority.

“We would like to take this opportunity to thank director Phil Salmon whose company AEC Engineering are building the structure at cost. This is a huge support to the club.”

The statement also clears up the allegations of a financial black hole at the club.

The club spokesman said: “There was no black hole, there were no shocks. A black hole implies that money has gone missing. It was a cashflow issue that needed a short-term solution. The solution chosen was the most cost-effective solution for the club and was voted on unanimously by the WST board at the time.

“There had been one other instance prior to this where a short-term directors’ facility was made to the club. No interest was charged and the facility was cleared at the end of the season. This situation was caused by a combination of reduced trading income than forecasted over the Christmas period and matchday income between January and early March 2016 average £6,000 per game behind budget.

“The options considered included arranging a three-month bank overdraft, but this would have taken time to arrange and would incur interest and arrangements fees. It would be likely that the bank would also require personal guarantees and it was felt at the time the facility provided by the directors was similar in nature, but was quicker to arrange, and carried no additional cost to the club.”